CALGARY, Dec. 22, 2014 /CNW/ - Northern Frontier
Corp. (TSXV: FFF) ("Northern Frontier" or the
"Corporation") provides operational and dividend policy
update.
The Corporation was just advised by a key client that they have
decided to defer a significant amount of fiscal 2015 work planned
with several service providers including Northern Frontier. These
activities include operating maintenance, maintenance capital and
new project work. Due to the lack of notice, Northern Frontier has
not had time to back fill the operational capacity that has been
created by this deferral. It is unclear as to how long this client
will defer these activities, accordingly management is in the
process of taking the necessary steps to adjust its cost structure
commensurate with the expected reduced operating activity
levels.
In light of this operational change and the impact that
uncertain oil commodity markets is having on visibility towards
industry activity levels, the Board of Directors (the
"Board") has decided to take defensive steps to protect the
Corporation's financial position and has suspended the dividend
policy to preserve cash on hand. The Board will revisit the
dividend policy when visibility on industry activity levels
improves.
About Northern Frontier Corp.
Northern Frontier's strategic objective is to create a large
industrial and environmental services business through a buy and
build growth strategy. Currently, the Corporation provides civil
construction and excavation services to the industrial industry,
primarily in the in situ Oilsands region south of
Fort McMurray, Alberta and bulk
water and fluids transfer logistic services in western
Canada.
The Corporation's common shares and common share purchase
warrants are listed on the TSX Venture Exchange under the trading
symbol "FFF" and "FFF.WT", respectively.
Reader Advisory
Forward-Looking Statements
This news release includes certain statements that constitute
forward-looking statements under applicable securities legislation.
All statements other than statements of historical fact are
forward-looking statements. In some cases, forward-looking
statements can be identified by terminology such as "may", "will",
"should", "expect", "plan", "anticipate", "believe", "estimate",
"predict", "potential", "continue", or the negative of these terms
or other comparable terminology. These forward-looking
statements include, among other things, statements in respect
of:
- expectations of future financial performance of the
Corporation; and
- dividend policy.
These statements are only predictions and are based upon
current expectations, estimates, projections and assumptions, which
the Corporation believes are reasonable but which may prove to be
incorrect and therefore such forward-looking statements should not
be unduly relied upon. In making such forward-looking statements,
assumptions have been made regarding, among other things, industry
activity, the state of financial markets, business conditions,
continued availability of capital and financing, future oil and
natural gas prices and the ability of the Corporation to obtain
necessary regulatory approvals. Although the Corporation believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the forward-looking statements.
By its nature, forward-looking information involves numerous
assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking
statements will not occur. Investors are cautioned that
forward-looking statements are not guarantees of future performance
and actual results or developments may differ materially from those
projected in the forward-looking statements. The Corporation
has no obligation to update any forward-looking statements set out
in this news release, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Northern Frontier Corp.